A customer relationship management (CRM) strategy is a data-driven approach that allows you to build a personal connection with customers through customized content. This strategy can empower employees to work together to provide optimal customer service. Improving customer service efforts can also enhance a company’s reputation, which may attract new customers.
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In this article, we discuss what a CRM strategy is, why it’s important to have one, and how to create a CRM strategy for your team.
What is a CRM strategy?
A customer relationship management (CRM) strategy is a business’s plan to grow sales and improve customer service. Its goal is to convert prospective leads into customers and retain existing customers with engaging content that is customized to their interests.
CRM strategies use a combination of processes, actions, and technology to meet this goal. The modern approach has shifted away from a transactional sales model to something more customer-centric. It recognizes how professionals can use data to address the diversity in their customer base.
Why is having a CRM strategy important?
An effective CRM strategy is important because it reduces the cost of customer acquisition and increases the customer’s lifetime value. This is a valuable result because it allows business leaders to focus their time and effort on growing the business, rather than simply sustaining sales. Here are the major benefits of implementing a CRM strategy:
It improves communication with customers
CRM strategies pool multiple data points of information about your customers. Other than just geographical data, it uncovers information about their preferences, values and personal goals. These fine details help you build a better customer profile.
You can use it to segment your audience and tailor your content more accurately. Customers may appreciate your attention to detail in your communications. In the long run, it builds solid relationships and fosters brand loyalty.
It promotes data-driven decision making
With more data points to draw from, a CRM strategy increases the reliability of your marketing practices. It encourages you to break down the larger organizational goal into smaller, more precise objectives.
Segmenting your audience based on their commonalities can help you adapt your strategies to better suit different markets. This way, you can efficiently use your resources to maximize results.
It boosts profits
When you back up your marketing activities with accurate data and you use more precise methods to target niches in your customer base, this reduces the likelihood of wasted resources. A CRM strategy brings efficiency to the marketing and sales relationship.
You not only gain more sales by creating loyal customers, but you also make a greater profit by minimizing overhead costs. Since a CRM strategy saves you time in the research and development stage, you also generate a greater profit from focusing your efforts on future growth.
How to develop a successful CRM strategy
To develop a successful CRM strategy, you need a clear vision that your team can collaborate on and execute. It requires your ability to discern between good and poor leads so that you can prioritize your actions. Implementing a CRM strategy is an ongoing effort. You may want to continue to keep track of your leads, carry out targeted marketing campaigns and reevaluate your actions.
The following is an eight-step guide on how to develop a powerful CRM strategy:
1. Define your specific goals
Refer to your employer’s organizational mission to make informed decisions about your CRM strategy. This may help you define your purpose from the very beginning. It’s an important step that ensures you stay on track with every decision you make.
Remember that over the long run, these goals are also subject to change. Thus, you may regularly revisit this step as your strategy evolves. Here are some common CRM strategy goals for you to consider:
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Increase customer satisfaction
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Boost productivity
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Enhance customer retention
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Encourage lead conversion
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Decrease customer bounce rates
2. Build your target customer profile
Create a buyer profile that represents your ideal customer. In this step, you develop an understanding about who is purchasing from you and why. To build an effective buyer persona, make it as detailed as possible. Consider the following information:
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Demographic characteristics
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Personality archetypes
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Hobbies and interests
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Likes and dislikes
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Challenges
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Aspirations
To gather these data points, interview your sales and customer services team, study existing customer profiles, and send surveys to your customers. Thorough research is key to figuring out the needs and expectations of your customers. At a later stage, it may help you identify the individuals who are most likely to purchase from you.
3. Describe your customer journey
Map every customer interaction from the moment they first discover you. Understand how they found you. Was it through a digital banner ad or an email marketing campaign? This can establish how long or how many steps it takes before a prospect makes a purchase.
The idea here is to ensure your customer journey is as simple as possible so that they are less likely to abandon a purchase. It’s an excellent method to address any areas for improvement. Here are some key questions to ask when mapping the customer journey:
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Which team or process is interacting with the customer at each stage?
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Is this your ideal customer’s preferred style of communication?
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Which content does your customer interact the most with or the least with?
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What is the customer trying to achieve?
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What challenges does the customer face?
4. Describe your customer experience
Audit the structure of your customer experience so that you can optimize each stage. The following are some examples for you to consider:
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Presales: Are you able to analyze customer needs and gather information effectively?
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Sales process: Are there any sales processes that you can automate to increase speed and efficiency?
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CRM: Are your communications relevant and engaging to your customers?
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After-sales: Do you have a system for customers to share their feedback? How can you lend support to a customer after a sale?
5. Establish a niche for yourself in the current market
To gain a competitive advantage in the current market, differentiate yourself from other brands and create your own niche. This way, you are less likely to lose customers to your competition. For a CRM strategy to work, form an idea about your strengths in the industry and the threats you may face. Here are some questions to ask:
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Where does your employer fit into the market?
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What is your unique selling point?
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What are the current trends and opportunities?
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How do your competitors differentiate themselves?
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What are the strengths and weaknesses of your competitors? What can you learn from them? What can you monetize?
6. Understand your product or service
Use your research to improve your products and services. At this stage, you can develop your value proposition. Analyze your brand’s tone of voice to see whether it fits your goals. Revise your employer’s narrative to stand out from your competitors. The following are some criteria questions to help you evaluate a company’s products and services:
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What message do you want to convey?
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What benefits do you want to draw attention to?
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Why should customers choose you over your competitors?
Once you make the necessary changes, communicate them to your co-workers. Each department needs to work cohesively to deliver a branded customer experience. Implement training workshops to ensure your co-workers are relaying the same message.
7. Invest in CRM software
One of the most efficient ways to drive your CRM strategy is by investing in CRM software. It helps you cut down on the labor-intensive tasks of capturing and sorting out data because technology can quickly take over this part of the process. It not only gathers real-time data but also ensures you don’t miss out on key leads.
To find a suitable CRM software for your team, evaluate your existing processes to establish your needs. When selecting a CRM software, consider its price, function, and ease of use. Remember to check whether it can integrate with your existing tools too.
Once you set up your CRM software, assign admins to manage user access. Next, conduct a pilot study with a small group of co-workers to test for glitches. Lastly, train your team on how to use the CRM software.
8. Set KPIs for your team
To ensure the success of your CRM strategy, you also can try to ensure your co-workers are working efficiently. Give them concrete targets using SMART goals (Specific, Measurable, Achievable, Realistic, and Time-bound).
The commitment of your team makes a positive impact on your ability to deliver a memorable customer experience. Thus, keep your co-workers informed and educated on all aspects of your CRM strategy.
I hope you find this article helpful.
